(RepublicanDaily.org) – President Joe Biden will not invoke the 14th amendment to the Constitution to prevent a national default crisis; a possibility that The Western Journal called “nuclear.” The 14th Amendment is a clause of the U.S. Constitution that reads that the “validity” of the national debt “shall not be questioned.” Biden was quoted as saying that the 14th amendment could not help the U.S., but rather Congress raising the debt ceiling was the way to avert a crisis, The Western Journal reported.
In late May, a deal had been negotiated by House Speaker Kevin McCarthy and President Biden. The deal was presented to Congress where it faced “right-wing push back,” Reuters reported.
As a deal was negotiated, certain federal programs saw budget cuts. The IRS faced a “$20B cut to its modernization funding package,” Federal News Network reported. On May 29, the Federal News Network reported that Congress still had to pass the negotiated deal by June 5 to avoid a national default. The determined deadline followed warnings from Treasury Secretary Janet Yellen that if Congress and the president failed to negotiate, the U.S. would likely default by June 1. Yellen re-characterized the deadline to June 5 in an update in late May, Reuters reported.
In May, Congress reached an agreement to limit federal spending over the next two years. The deal would raise the national debt ceiling and curb spending until January 2025, the Associated Press reported. When the deal was reached on May 28, the president stated that it was “good news” and that it took the prospect of a national default crisis “off the table,” which had been necessary to preserve the United States’ clean credit history and prevent economic downturn, the Associated Press reported. Reportedly, now that the deal has been struck, Biden will need to get his Democratic Party on board and McCarthy will need to get the Republican Party on board to sign the terms.
The possibility of a U.S. default crisis has loomed as the potential outset of an international financial crisis. The expected outcome of a U.S. default would be frozen financial markets, unemployment rate spikes, a stock market crash that could erase “trillions” in household wealth, and even an international financial crisis, Federal News Network reported.
Copyright 2023, RepublicanDaily.org
